Senior buys Weston Group

By @ibtimes on

Senior Plc said it had bought privately-held Weston Group, which makes precision machined parts and assemblies for the commercial aerospace industry, for 54 million pounds.

Weston, located in Lancashire and with facilities in Thailand, counts Rolls-Royce, Spirit Aerosystems and Contour Aerospace among its largest customers. Its products are used on each of the Airbus A320 family, A330, A350 and A380 platforms, either on the engines or the aircraft structure itself.

Senior, which designs and manufactures technology components and systems for original equipment producers in aerospace, diesel engine, and energy markets, expects the deal to add to earnings immediately.

The company said more than 70 percent of Weston's revenue for the first ten months of 2011 was derived either directly or indirectly from Airbus commercial aircraft platforms.

Over the past year, Airbus has announced build-rate increases for all of these aircraft types and, the future prospects for Weston appear highly encouraging, Senior added.

Weston, which specialises in aluminium and hard metal structural parts as well as premium aircraft-seat structures, reported sales of 42.5 million pounds in the year to Dec 2010.

Senior said it funded the deal through existing cash and debt facility.

Shares in Senior closed at 162 pence on Friday, valuing the business at just over 650 million pounds.

($1 = 0.6458 British pounds)

(Reporting by Adveith Nair; Editing by Matt Scuffham)

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